"The increase in the ratio was the largest since 2011, though it's important to keep in mind that the second quarter generally sees the largest rise in the debt ratio, so don't expect further increases of this magnitude in the second half of the year.''

The increased borrowing comes at a time of low interest rates.

Reitzes noted the household debt service ratio, which measures the amount of interest and principal as a share of disposable income, increased 0.2 percentage points to 14.1 per cent.

However, he said interest payments as a share of disposable income hit a new record low at 6.37 per cent in the quarter.

Overall, total household credit market debt amounted to $1.874 trillion at the end of the second quarter, up 1.8 per cent from the previous quarter.

Household net worth increased 0.9 per cent in the second quarter as non-financial assets, primarily real estate, rose 1.8 per cent while net financial assets edged down 0.1 per cent.